Democrats swept the runoff Senate election in Georgia having won both seats in the state. This has resulted in Democratic control in the Senate as the seats were split 50-50, however, the Vice President gets the deciding vote in the case of a tie.
This comes as radical white nationalists storm the US Capitol building during the joint session of Congress in which the electoral count was taking place to officially declare Joe Biden the 46th President.
Aside from the craziness coming out of Washington D.C., there are significant consequences to the Senate election. A Democratic Senate implies Biden will have more allies in the legislating process, and that scares Big Tech while marijuana, gambling, and sustainable energy stocks rejoice.
The key to this news is the notion that the markets almost always overreact. It's vastly more likely that a Democratic Senate will have a minimal impact on the way Congress tries to restrain the reach of Big Tech companies. When markets overreact, you should take notice. An investor can make significant gains simply from buying on the rumor and selling on the news. Speculative-swing trading is far more risky than value investing, but it can yield substantial returns.
Big Tech might be in trouble, but I doubt it. The inadequacy of our lawmakers has more to do with the system in which they operate rather than their actual abilities. If Congress had fewer restraints on their power and a faster pathway to enacting laws, then Big Tech and Oil might be in trouble. It's far more likely that data laws within the US will remain unchanged for the foreseeable future.
Apple and Amazon stock fell by about 3% today, a steep single-day decline for the tech giants. Tesla is back on the rise as analysts at Morgan Stanley adjust their target price up to $810. The year 2021 is off to a very hot start, and it will be a memorable year without a doubt.